M’laya among only 4 states to disburse loans to street vendors

NEW DELHI, Dec 15: Only four states including Meghalaya could disburse loans to the vendors within a month under the PM Street Vendor’s AtmaNirbhar Nidhi scheme, but large number of applications were rejected on flimsy grounds, a parliamentary committee has observed.
Lending institutions in only four states and union territories — Jammu and Kashmir, Ladakh, Mizoram and Meghalaya — had been able to disburse loans within 30 days of receipt of an application, the parliamentary committee has observed in its report.
According to the panel’s report tabled in Lok Sabha on Monday, banks all over the country declared about 6.67 lakh loan applications incomplete, citing vendors not being interested in availing the loan, insufficient documents, and other reasons.
The scheme intends to facilitate collateral free working capital loans of up to Rs 10,000 of one-year tenure, to approximately 50 lakh street vendors, to help resume their businesses in the urban areas, including surrounding peri-urban/rural areas.
This was intended empower street vendors by not only extending loans to them, but also for their holistic development and economic upliftment.
It stated that nine states and UTs, including Gujarat, J&K, Jharkhand, Meghalaya, Rajasthan, Telangana, Tripura and Uttar Pradesh, have totally exempted the loans under PMSVANidhi from stamp duty.
However, Andhra Pradesh, Bihar, Delhi, Goa, Karnataka, Kerala, Maharashtra and Odisha still charge more than/equal to Rs 100 stamp duty on loans under PMSVANidhi.